Association of Islamic Banking Institutions Malaysia

Islamic Banking Industry Welcomes Cut in OPR

Kuala Lumpur, 17 February 2009 - The Association of Islamic Banking Institutions Malaysia (AIBIM) welcomes the cumulative reduction of 100 basis points to Bank Negara Malaysia’s Overnight Policy Rate (OPR) to 2.50% as of today from 3.50% in November 2008. This monetary easing cycle should result in lower cost of funds for Islamic banks apart from bringing down the costs for their customers to sign up new financings. In an environment of falling OPR, customers of Islamic banks will continue to enjoy competitive returns on their deposits and investment accounts.

To be consistent with the move by the Association of Banks in Malaysia (ABM) to reduce charges on outstanding credit card balances by between 0.5% and 1.5% for Tier 1, Tier 2 and Tier 3 cardholders, the AIBIM encourages its members to offer the same to their customers effective 31 March 2009.

ABOUT THE ASOCIATION OF ISLAMIC BANKING INSTITUTIONS MALAYSIA (AIBIM)
The Association of Islamic Banking Institutions Malaysia (AIBIM) was established in 1995.

AIBIM’s objectives, among others, are to foster the establishment and the conduct of sound Islamic banking system and practices in Malaysia in cooperation and consultation with Bank Negara Malaysia or other domestic regulatory bodies, to promote and represent the interests of members, to promote Islamic banking related education and training programmes and to work in collaboration with other similar associations worldwide. For more information visit www.aibim.com

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Issued by:

The Association of Islamic Banking Institutions Malaysia
Tel : 03-2694 8002/ 8003 Fax : 03- 2694 8012